Kemira Oyj (KRA1V), Europe’s largest supplier of chemicals to treat water, will not be bidding for the water business of Siemens AG because the bulk of the unit's sales is from machinery and engineering.
Siemens’s Water Technologies division, which the German company has put up for sale, largely sell equipment modules, and there is little in-house chemical technology that would interest Kemira, Chief Executive Officer Wolfgang Buechele said.
“There is a little bit of the chemical business that would fit us but the bulk of the business doesn’t: it’s equipment, it’s engineering at a totally different scale to where I see us,” Buechele said in an interview today.
Siemens is selling the unit, which generates about 1 billion euros ($1.27 billion) in sales a year. Water Technologies division includes wastewater, municipal and industrial water purification services and membrane filtration systems. The business has 4,500 employees, 3,000 of them in North America and 600 in Asia.
Ecolab Inc. (ECL:US), the largest maker of cleaning chemicals for hotels and restaurants, last year purchased water-treatment company Nalco Holding Co. for $5.4 billion to diversify its customer base.
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